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Product market competition, financing constraints, and corporate digital transformation

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  • Meng, Meng

Abstract

Using data from Shanghai and Shenzhen’s A-share listed manufacturing companies from 2011 to 2023, this study we examined the impact of product market competition on firms’ digital transformation along with its underlying mechanisms. Findings indicate that (1) product market competition considerably inhibits the process of firms’ digital transformation. (2) Its impact varies with the nature of firm ownership and region. (3) Intensified market competition poses financing constraints on firms’ transformation process, thereby weakening their willingness to engage in digital transformation.

Suggested Citation

  • Meng, Meng, 2025. "Product market competition, financing constraints, and corporate digital transformation," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325014382
    DOI: 10.1016/j.frl.2025.108183
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    References listed on IDEAS

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    1. Juan He & Xiaodong Du & Wei Tu, 2024. "Can corporate digital transformation alleviate financing constraints?," Applied Economics, Taylor & Francis Journals, vol. 56(20), pages 2434-2450, April.
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    1. Yang Liu & Sameer Kumar & Huiqing Liu & Shun Li & Ziyun Zhou, 2025. "ESG performance, digital transformation, and green innovation," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.

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